Bitmine's Ethereum Treasury Marks $6.2 Billion Unrealized Loss

The Tip Desk · November 11, 2026 · 4 min read

Staking and validation generated $121.4 million of the $124.8 million in revenue for the fiscal year ended August 31, 2026.

Bitmine Immersion Technologies (BMNR), a digital-asset-focused blockchain infrastructure company, reported a net loss of $6.3134 billion for the fiscal year ended August 31, 2026, reversing a $348.6 million profit a year earlier. The swing tracked a $6.2291 billion unrealized loss on digital-asset holdings after an $805.0 million unrealized gain in the prior year.

The company said the loss reflected downward movement in digital-asset prices. It had begun acquiring ETH alongside BTC in the last quarter of fiscal 2025. As of August 31, 2026, it held 5,901,837 ETH with a fair value of approximately $14.6 billion, which it described as substantially all of its digital-asset holdings and a significant majority of total assets. Because those assets are measured at fair value with changes in earnings, the company said ETH prices are expected to continue to cause significant volatility in reported results even when no ETH is sold.

Operations, by contrast, had already shifted. Total revenue was $124.8 million, versus $6.1 million in the year ended August 31, 2025. Staking and validation accounted for $121.4 million, or about 97% of the total, after the company initiated native staking in November 2025. The Pier Two acquisition, closed March 24, 2026, contributed $10.8 million of that staking revenue. Since the acquisition, MAVAN contributed approximately $10.8 million of revenue and a net loss of about $0.2 million through August 31, 2026. The company recognized $21.7 million of goodwill and $8.1 million of net intangible assets; the purchase-price allocation remained preliminary.

Legacy mining and leasing faded. Self-mining revenue fell 56.7% to $1.4 million from $3.1 million, partly because of a suspension during relocation. Leasing revenue declined 18.3% to $1.5 million on less activity under KULR Technology Group contracts, which the company said it does not expect to generate further revenue after completion. Equipment sales were zero, versus $0.8 million. Consulting was $0.6 million.

Cost of sales rose to $18.3 million from $5.8 million, primarily on staking and validation. The company said cost of sales as a percentage of revenue decreased because staking is less cost-intensive than self-mining, leasing, and equipment sales. General and administrative expenses were $376.9 million, up 4.4% from $361.1 million, primarily related to ETH custodian fees and treasury operations, with higher employee and board compensation partly offset by the absence of a non-recurring warrant expense and lower bank and custody fees.

Income from operations swung to a $6.4995 billion loss from $444.2 million of income. Other items included a $257.9 million gain on the change in fair value of warrant liability, a $143.7 million net loss on derivative contracts (no open contracts as of August 31, 2026), $9.4 million of warrant-offering issuance costs, a $22.9 million unrealized loss on an Eightco equity-method investment, and $12.5 million of interest income, net, versus $0.2 million of interest expense a year earlier, which the company tied to higher average bank balances from ATM, RDO, and preferred-stock offerings. Income taxes swung to a $92.3 million benefit from a $92.3 million expense, primarily from reversal of deferred tax liabilities on prior unrealized gains and a 100% valuation allowance on new deferred tax assets.

Adjusted EBITDA was a loss of $154.5 million, versus a loss of $8.0 million. Adjusted diluted loss was $0.18 a share, versus $5.04, on 482,292,553 diluted weighted-average common shares versus 24,515,226.

During the fiscal year the company sold 395.1 million shares under its ATM program for gross proceeds of $13.2015 billion and net proceeds of $12.9408 billion, and in June 2026 issued 3,500,000 shares of redeemable preferred stock at $80.00 a share for $280.0 million gross. Proceeds were used for ETH purchases, Moonshots investments, ecosystem grants, and working capital. It uplisted to the NYSE American in June 2025 and to the New York Stock Exchange on April 9, 2026.

The company said future revenue and cash generation are expected to depend substantially on ETH staked, ETH prices, validator performance, and prevailing staking yields, and that a sustained decline in ETH prices could reduce the value of its asset base and staking revenue. Effective September 3, 2026, it terminated the prior MAVAN management-services agreement without an early-termination penalty.